CMCA CMCA - Certified Manager of Community Associations Governance and Legal Issues Questions and Answers 2 — Questions and Answers
Question 1: Which governing document takes legal precedence when there is a conflict between the CC&Rs and the association's bylaws?
- The bylaws, because they are more specific
- The CC&Rs, because they are recorded with the county and run with the land (Correct answer)
- The rules and regulations, because the board adopted them most recently
- The state statute, only if both documents are silent
Correct answer: The CC&Rs, because they are recorded with the county and run with the land
The hierarchy from highest to lowest authority is state statute, then CC&Rs, then bylaws, then rules and regulations. CC&Rs are recorded land use restrictions that take precedence over bylaws when they conflict.
CC&Rs are recorded with the county recorder and run with the land, binding all current and future owners. Bylaws govern the internal operations of the association and are subordinate to CC&Rs. Understanding this hierarchy is fundamental to community association governance and is heavily tested on the CMCA exam.
Question 2: The open meeting requirement in most state HOA statutes means:
- All board meetings must be held outdoors
- Homeowners have the right to attend and observe board meetings with limited exceptions for executive session topics (Correct answer)
- Any homeowner may vote at any board meeting
- Board members may not meet privately before a formal meeting
Correct answer: Homeowners have the right to attend and observe board meetings with limited exceptions for executive session topics
Open meeting laws give homeowners the right to attend and observe regular board meetings, fostering transparency, though boards may enter executive session for specific sensitive topics such as litigation and personnel matters.
Open meeting requirements vary by state but generally prohibit boards from conducting business in secret. Executive sessions are permitted exceptions for legal advice, pending litigation, employee matters, and individual homeowner hearings. Actions taken in improper closed sessions can be voidable.
Question 3: A quorum is required at a board meeting in order to:
- Allow homeowners to speak during open forum
- Legally conduct business and take binding votes (Correct answer)
- Send meeting notices to homeowners
- Hire a vendor without a formal bidding process
Correct answer: Legally conduct business and take binding votes
A quorum, the minimum number of board members required to be present, must be established before the board can legally transact business. Actions taken without a quorum are generally invalid.
Quorum requirements are typically defined in the bylaws such as a majority of the board. Without a quorum, the board can discuss issues but cannot take binding votes. This prevents a small minority of board members from acting on behalf of the entire association.
Question 4: Under the Fair Housing Act, which of the following association policies would most likely constitute illegal discrimination?
- A rule requiring all owners to maintain their lawns
- A rule prohibiting service animals in common areas (Correct answer)
- A requirement to notify the association before beginning a renovation
- A policy requiring all guests to sign in at the gate
Correct answer: A rule prohibiting service animals in common areas
Prohibiting service animals in common areas violates the Fair Housing Act, which requires reasonable accommodations for individuals with disabilities, including allowing service animals.
The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, disability, and familial status. Associations must make reasonable accommodations for persons with disabilities. A blanket ban on animals in common areas that applies to service animals is a direct violation.
Question 5: When a community association enters into a contract, it is acting as:
- A governmental entity with sovereign immunity
- A legal entity such as a nonprofit corporation with capacity to contract (Correct answer)
- A real estate brokerage
- An extension of the local municipality
Correct answer: A legal entity such as a nonprofit corporation with capacity to contract
Community associations are typically incorporated as nonprofit corporations, giving them legal capacity to enter contracts, sue and be sued, and hold property in their own name.
As a legal entity separate from its members, the association can enter binding contracts, incur liabilities, and own common property. Board members who sign contracts on behalf of the association should ensure they are doing so in their representative capacity to avoid personal liability.
Question 6: Standing rules in a community association differ from rules and regulations primarily in that standing rules:
- Are recorded with the county and run with the land
- Are procedural rules adopted by the board for its own internal operations, not governing homeowner conduct (Correct answer)
- Must be approved by a membership vote to become effective
- Override the CC&Rs when they conflict
Correct answer: Are procedural rules adopted by the board for its own internal operations, not governing homeowner conduct
Standing rules are internal procedural guidelines for how the board conducts its own affairs such as meeting procedures and committee assignments, as distinguished from rules and regulations that govern homeowner behavior.
Standing rules help the board run meetings efficiently and consistently without amending the bylaws for every procedural matter. They can typically be adopted, amended, or rescinded by a simple board vote.
CMCA CMCA - Certified Manager of Community Associations Governance and Legal Issues Questions and Answers 2
Which governing document takes legal precedence when there is a conflict between the CC&Rs and the association's bylaws?